KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI), the representative body for the top 210 foreign investors in Pakistan, revealed substantial contributions by its members to Pakistan’s economy in its 2023 annual economic contribution survey.
Over the past 10 years, from 2013 to 2023, Pakistan received a net Foreign Direct Investment (FDI) of $19.8 billion.
During the same period, OICCI members contributed $22.6 billion, showcasing a significant commitment to the country’s economic development. This robust investment underscores the confidence foreign investors have in Pakistan’s long-term potential.
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In 2023, the 139 OICCI member companies reported assets amounting to Rs 29.6 trillion, capital expenditure of Rs 482 billion, government levies of Rs 2.4 trillion, and gross revenue of Rs 10.4 trillion.
Despite the challenges faced by the country, OICCI members have shown more confidence than other foreign investors over the last decade, as reflected in the investment figures and economic contributions.
Highlighting members’ confidence in the Pakistan economy, OICCI President Rehan Shaikh said, “as Pakistan navigates its economic challenges, the sustained confidence and investment by OICCI members provide a solid foundation for future growth and development.”
Among the OICCI members, 51 are listed companies that have demonstrated remarkable growth in their financial performance. From 2019 to 2023, the Compound Annual Growth Rate (CAGR) of profit before tax surged to 30.2 percent compared to a CAGR of 18.9 percent between 2018 and 2022. In 2023, these companies reported a cumulative profit before tax of Rs 1,130 billion and a turnover of Rs 6,747 billion.
The sector-wise turnover for 2023 highlights the diverse contributions of various industries to Pakistan’s economy with the Oil, Gas & Energy recording Rs 4,857 billion and Banking, Insurance, Finance & Leasing Rs 1,555 billion.
Commenting on the survey findings, OICCI CE/ Secretary General M Abdul Aleem said the significant contributions of OICCI members underscore the pivotal role of foreign investment in bolstering Pakistan’s economy. He said the diverse sectoral contributions reflect a broad-based economic engagement, with key sectors such as oil and gas, banking, and consumer products leading the way.
Besides the monetary contribution, OICCI members also play a leading role in the transfer of technology, digital transformation, introducing latest inventions and sharing of best practices in the field of manufacturing operation, supply chain and marketing of internationally renowned brands.
By investing Rs 13 billion in 2022-2023 in Pakistan’s communities through its Corporate Social Responsibility (CSR) activities, the members have positively impacted 40 million individuals across the country.
Copyright Business Recorder, 2024
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